Day Trading Order Types – Market and Limit Orders
Day Trading Order Types – Market and Limit Orders Tuesday December 18, 2007 I recently received the following question from a day trader who trades the stock markets : I trade equities, so I was wondering if you could suggest a good order entry type for the entry point. In your (moving average bounce) tutorial, you recommend a Limit order, but Limit orders will only work if your asking price is below the current price for a long, or above the current price for a short. Will a market order suffice when you see an entry point? This is a very good question, and an important topic for beginning and experienced day traders alike, so I am going to answer this question separately for stock markets in general and then specifically for the moving average bounce trade.
